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CNN Live At Daybreak

Eye on the Economy

Aired June 06, 2003 - 06:18   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now and a check on today's market action.
Let's go live to New York and Susan Lisovicz.

Good morning -- Susan.

SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol, and happy Friday to you.

COSTELLO: Yes.

LISOVICZ: Futures are higher right now, but that could change an hour before the opening bell when we get the highly anticipated May jobs report. Economists are expecting the unemployment rate to rise from 6 percent to 6.1 percent, which would be the highest level we've seen in nine years. There's also an expectation that the economy will lose 39,000 jobs.

Now what that jobs report says could have an impact on the market, because really any sustained economic recovery can't take place unless consumers participate and consumers typically restrict their spending if they're worried about jobs.

Yesterday we got a weak weekly jobs report, but stocks managed to rally despite that. The Dow industrials closed above 9,000 for a second straight day. The Nasdaq rose two-thirds of a percent. And one stock to keep an eye on today is Wal-Mart. The world's largest retailer holding its annual shareholder meeting and an analyst meeting today so we could get some insight from Wal-Mart.

Back to you -- Carol.

COSTELLO: Got you. Is the Federal Reserve expected to make any move today?

LISOVICZ: Well you know that's very interesting because the Fed doesn't meet until next week. But what that jobs report says, if it is worse than expected, there are some folks out there that say that the Fed will act proactively to immediately cut interest rates, most likely by a quarter of a percentage point. And we should say that the Federal Funds Rate is already at a 41-year low, 1.25 percent, and that is the benchmark for interest rates that we pay on everything from credit cards to mortgage rates, money markets and the like. So, you know, it could very well happen, depending on what we hear at 8:30 a.m. Eastern Time.

COSTELLO: All right, we'll keep our ears open.

Thank you, Susan, we'll get back to you in the next half hour.

LISOVICZ: My pleasure.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired June 6, 2003 - 06:18   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now and a check on today's market action.
Let's go live to New York and Susan Lisovicz.

Good morning -- Susan.

SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol, and happy Friday to you.

COSTELLO: Yes.

LISOVICZ: Futures are higher right now, but that could change an hour before the opening bell when we get the highly anticipated May jobs report. Economists are expecting the unemployment rate to rise from 6 percent to 6.1 percent, which would be the highest level we've seen in nine years. There's also an expectation that the economy will lose 39,000 jobs.

Now what that jobs report says could have an impact on the market, because really any sustained economic recovery can't take place unless consumers participate and consumers typically restrict their spending if they're worried about jobs.

Yesterday we got a weak weekly jobs report, but stocks managed to rally despite that. The Dow industrials closed above 9,000 for a second straight day. The Nasdaq rose two-thirds of a percent. And one stock to keep an eye on today is Wal-Mart. The world's largest retailer holding its annual shareholder meeting and an analyst meeting today so we could get some insight from Wal-Mart.

Back to you -- Carol.

COSTELLO: Got you. Is the Federal Reserve expected to make any move today?

LISOVICZ: Well you know that's very interesting because the Fed doesn't meet until next week. But what that jobs report says, if it is worse than expected, there are some folks out there that say that the Fed will act proactively to immediately cut interest rates, most likely by a quarter of a percentage point. And we should say that the Federal Funds Rate is already at a 41-year low, 1.25 percent, and that is the benchmark for interest rates that we pay on everything from credit cards to mortgage rates, money markets and the like. So, you know, it could very well happen, depending on what we hear at 8:30 a.m. Eastern Time.

COSTELLO: All right, we'll keep our ears open.

Thank you, Susan, we'll get back to you in the next half hour.

LISOVICZ: My pleasure.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com